SCB FACILITIES MANAGEMENT LTD

Executive Summary

SOUTH CHESHIRE BUILDING LTD is financially stable with strong working capital and positive net assets, reflecting a sound operational footing. The main caution is its substantial long-term liabilities, which should be managed proactively to ensure continued financial health. With prudent debt management and liquidity strengthening, the company is well positioned for steady growth.

SOUTH CHESHIRE BUILDING LTD - Analysis Report

Company Number: 12932720

Analysis Date: 2025-07-20 15:19 UTC

Financial Health Assessment Report: SOUTH CHESHIRE BUILDING LTD

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1. Financial Health Score: B

Explanation:
SOUTH CHESHIRE BUILDING LTD demonstrates a generally sound financial condition with solid net assets and positive working capital. The company exhibits a "healthy cash flow" profile indicated by substantial current assets exceeding current liabilities, and stable fixed assets. However, the presence of significant long-term creditors and provisions suggests caution. The company would benefit from improving liquidity and reducing longer-term obligations to strengthen its financial resilience.

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2. Key Vital Signs

Metric	Value (2023)	Interpretation
Fixed Assets	£63,417	Stable investment in long-term assets; no significant change year-on-year, indicating asset stability.
Current Assets	£328,307	Healthy level of short-term assets; strong liquidity potential to meet short-term obligations.
Current Liabilities	£112,971	Moderate short-term liabilities; manageable given current asset level.
Net Current Assets	£215,336	Positive working capital, indicating good short-term financial health and operational liquidity.
Creditors > 1 Year (Long-term Debt)	£162,095	Significant long-term liabilities; could be a symptom of financial leverage or deferred obligations.
Provisions for Liabilities	£9,450	Small provisions indicating some potential contingent liabilities or future expenses.
Net Assets (Shareholders' Funds)	£107,208	Positive equity base; company has retained earnings and net worth above zero, a sign of solvency.
Share Capital	£1.00	Nominal share capital typical for micro-entities; equity largely from retained earnings.
Average Number of Employees	6	Small team size consistent with micro-entity classification; efficient staffing for operations.

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3. Diagnosis: What the Financial Data Reveals

• Liquidity and Operational Health: The company shows "healthy cash flow" with current assets significantly exceeding current liabilities, indicating it can comfortably meet its short-term debts—a vital sign of operational stability.

• Leverage and Long-Term Obligations: The notable amount of creditors due after more than one year (£162,095) acts as a "symptom of financial stress" or reliance on external funding, which may restrict future flexibility if not managed prudently.

• Asset and Equity Stability: Fixed assets remain constant, suggesting no new major capital expenditure or asset disposals. Positive net assets and shareholder funds show the business is solvent with retained earnings supporting its financial foundation.

• Growth and Scalability: Consistent employee numbers and asset levels suggest steady operations without rapid expansion or contraction. This indicates controlled growth but may also reflect limited scale or market reach currently.

• Risk and Contingencies: Small provisions for liabilities indicate awareness and accounting for potential future costs, which is prudent financial management.

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4. Recommendations: Specific Actions to Improve Financial Wellness

1. Manage Long-term Liabilities:

   • Review the structure and terms of long-term creditors to explore options for refinancing or reducing debt levels. Lowering long-term obligations can reduce financial risk and interest expenses.

2. Strengthen Liquidity Reserves:

   • Maintain or increase cash reserves within current assets to safeguard against unforeseen operational disruptions or market downturns.

3. Enhance Profit Retention and Capital Base:

   • Consider strategies to improve profitability and retain earnings to build equity, which will buffer against future uncertainties.

4. Monitor Provisions Closely:

   • Regularly reassess provisions for liabilities to ensure they reflect realistic estimates and avoid surprises that could impact cash flow or solvency.

5. Evaluate Growth Opportunities:

   • Explore opportunities for expanding the client base or entering complementary service areas within construction to increase revenue without overextending resources.

6. Maintain Compliance and Reporting Rigor:

   • Continue timely filing and accurate reporting to preserve company reputation and avoid regulatory penalties, as currently demonstrated.

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